Microsoft has officially cut the price of the all three Xbox 360 models across Europe — with the Arcade unit now selling for GBP 159.99.

Microsoft has officially cut the price of all three Xbox 360
models across Europe — with the Arcade unit selling
for GBP 159.99.

The Arcade SKU now retails for less than Nintendo's Wii, as
Microsoft looks to boost sales during the busy Easter retail
period and ahead of the release of the highly-anticipated
title Grand Theft Auto IV at the end of April.

The Premium 360 now has a recommended retail price of GBP
199.99, a saving of GBP 50, while the black Elite model will
sell for GBP 259.99.

All prices come in to effect on March 14.

"Xbox 360 is now mass market in Europe," commented Chris
Lewis, vice president of Microsoft's Interactive
Entertainment Business in Europe.

"We have reached and surpassed several key milestones that
form part of our long term strategic plan to achieve critical
mass in Europe; and our portfolio now offers the kind of
mainstream entertainment experiences that secure wider appeal
for Xbox 360.

"These factors allow us to execute on our strategy to widen
the market for Xbox 360, as planned," he added.

According to Microsoft's data, the Xbox 360 has the highest
software attach rate of the three current generation consoles
in Europe, with seven titles to every machine.

Retailers had already pre-empted Microsoft's move, with
online store Amazon.co.uk slashing
the price this morning following confirmation
of the price drop by the German edition of the Financial
Times.

"We continue to offer intense, immersive gaming experiences
for gamers — but now weāre priced in a
way that will allow new consumers to find out for themselves
why Xbox 360 is the ultimate in high-definition
entertainment," said Lewis.

"History shows that GBP 159.99 is the price point where a
consoleās audience begins to expand, and with
these new ERPs in place weāre ready to bring
more consumers into the Xbox 360 world."

Microsoft has stated on numerous occasions that Europe is the
most important battleground for the Xbox 360 in the current
console war with Sony's PlayStation 3.

Last month Shane Kim reiterated
this point at D.I.C.E. in Las Vegas, and said that this
fiscal year would be the most financially successful for
Microsoft Game Studios.

He also said that the Xbox 360 should experience a longer
life cycle than the original Xbox.

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